KARACHI: The Directorate General of Customs Valuation revised the customs value of yogurt (fruit/flavored) and pudding/dessert through Valuation Ruling No 1106/2017 under Section 25A of the Customs Act, 1969.
According to details, the Directorate General earlier conducted an audit of the clearance values of imported yogurt and pudding and in comparison with international trading prices and the local market selling prices, the import values were found to be on lower side. As an immediate corrective measure the Directorate General circulated reference values vide National Valuation Data Base letter 74 dated 10-11-2016.
However, as per the policy in vogue, Valuation Database Reference values are required to be converted into Valuation Ruling for uniform applicability across the country. In this context, the Directorate General, valuation initiated an exercise for determination of customs values of imported yogurt under section 25A of Customs Act, 1969.
A Meeting for determination of customs values of yogurt and pudding with stakeholders was held on 08-03-2017 which was duly attended by stakeholders. Importers strongly contended and requested that the said Valuation Data Base values may be reviewed in the light of prevailing international and local market prices, which they claimed to be much lower. The importers, were of the view that actual prices of yogurt and pudding were lower than that determined vide VDB letter No. 74 and that their costs of selling have not been correctly accounted for.
Further, to determine veracity of their stance, the stakeholders insisted that a fresh market surveys be conducted from local market for determination of customs values of yogurt and pudding and that their extra selling costs like refrigeration and allied expenses in shape of logistics and handling (due to sensitive nature of goods) may be duly accounted for.
They also insisted to bring on record that the subject goods are perishable items and therefore have got limited shelf life, consequently, near the expiry dates, these perishable items are sold on sale and discounted prices. It was further contended by the traders that since the subject goods are mainly being sold on super and retail markets, therefore, a lot more expenses (shelf rent, marketing expenses, refrigeration cost etc.) are contributed at retail level which cannot be managed without taking extra profit margins.
The importers contended that all these factors may also be considered in fixing value of subject goods. Prices are also verified on the location of market in the city and date of expiry of the product in question.
